ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

As stated here several times previously, NT filings for penny stocks are par for the course. It is neither a good thing or a bad thing. It just is. It is no different than the IRS permitting taxpayers to file for extensions. So long as you file within the new extended deadline, there is no problem.

And SEC filings for microcap companies requiring extensions legitimately occur for any number of reasons, such as:

(a)
Small and insufficient accounting/finance dept to prepare/file all the required disclosures/schedules in the time allotted.

(b)
Quality and independence of underlying source documentation is typically weak or lacking altogether in small companies, which forces the auditor to have to perform alternative and/or supplemental audit procedures which takes additional time.

(c)
Small companies are low priorities for auditing firms (and given the low fees these small companies generate for the auditing firm, it is understandable and expected within the industry) and auditing firms always give priority to larger clients to ensure that audits and SEC filing sign-offs are completed for these larger clients well in advance of the filing deadlines -- and so this often means that the smaller clients are put on the back burner until the auditing firm can free up resources to wrap up the smaller company's audit and financial statements.

Based on the PR today announcing that the 10K will not be filed in time to meet even the extended NT deadline, it looks like (b) and (c) are our winners, folks...

...that PR was a spin job, folks, and anyone who has ever been involved with annual audits of public companies knows full well that it is simply a nice and polite way to describe scenarios (b) and (c) above... ...how so? Because way back at the beginning of JAN'15, SCRC provided the auditors a preliminary trial balance showing every single General Ledger account balance for both 12/31/14 and 12/31/13 as well as monthly financial statements for all of 2014 (and, no, this is NOT inside info -- rather, this is SOP for how audits are done), and from this trial balance, the auditors already knew that SCRC's revenues exploded during Q3 and Q4, and that these last two quarters comprised almost all of 2014's revenues/earnings...

...and so the auditors already factored all this into their planning and the formulation of their audit plan months ago way back in JAN'15. This did NOT catch the auditors off guard or by surprise by any means, at least not in the way that the PR is making it sound like. The ONLY reasons the audit is not completed yet is because either the auditor was too busy with other clients and part of the low fees SCRC is paying them entitled the auditor to shove SCRC to the back burner if need be, and/or the expected results of the audit procedures did not materialize as expected and the auditors now need to perform additional audit procedures.